The headline Producer Price Index climbed from 5.7% year-over-year in April to 6.5% in May, topping economist expectations of 6.4% — the hottest reading since December 2022.

Inflation worries remain as employment data has surpassed expectations.

China's PPI surged 2.8% in April, its highest in 45 months, as Strait of Hormuz disruptions drive commodity prices higher and squeeze manufacturer margins.

Economists have been closely examining economic reports given the ongoing war with Iran and concerns about higher overall inflation.